U.S. traders are back in the game today!
Will they extend the cautious trends that we’ve seen in the last trading sessions?
Before moving on, ICYMI, today’s Asia-London session watchlist looked at GBP/AUD for pullback plays after breaking a support level. Be sure to check out if it’s still a valid play!
And now for the headlines that rocked the markets in the last trading sessions:
Fresh Market Headlines & Economic Data:
U.K. retail sales recovery slows further in September as consumer confidence wanes
Japan producer prices rise 0.3% on month in September
Australia’s business confidence jumps on plans to end lockdowns, NAB says
New Zealand’s card spending edges up as COVID-19 alert level changes
China to allow greater fluctuation of coal-fired power prices
Energy crunch: Qatar says LNG production ‘maxed out’
Asia shares dip on inflation worries, Evergrande jitters
Rising U.S. yields push yen to lowest in nearly 3 years
Japan premier warns of negative impact on companies from weak yen
UK job vacancies reach 20-year high
Upcoming Potential Catalysts on the Economic Calendar:
Eurozone ZEW economic sentiment at 9:00 am GMT
Germany’s ZEW economic sentiment at 9:00 am GMT
U.S. JOLTS job openings at 2:00 pm GMT
FOMC member Clarida to give a speech at 3:15 pm GMT
FOMC member Bostic to give a speech at 4:30 pm GMT
If you’re not familiar with the forex market’s main trading sessions, check out our Forex Market Hours tool.
What to Watch: GBP/CHF
The majors didn’t see a lot of intraday trends today as investors adopted a wait-and-see mode and waited for a couple of corporate earnings reports.
See, most of them wanted to see how high energy prices, strong inflation, and the threat of tightening among major central banks have affected the corporations’ bottom line.
Luckily, the pound’s losses are limited amidst the cautiousness. And why not? Just after Bank of England (BOE) member Michael Sanders hinted of a sooner-than-expected tightening, the U.K. also published strong retail and labor market numbers.
If today’s U.S. session traders take on risks, then we could see GBP/CHF follow an uptrend that’s been around since the start of the month.
It also doesn’t hurt that there’s a moving average crossover on the chart and that we’re seeing a break-and-retest situation on the 1-hour time frame. GBP/CHF could pop to this week’s highs and even make new October highs!
If we see more concerns about high inflation and early tightening, however, then GBP/CHF could trade below its trend line support and go back inside its descending channel from September.
